A credit card is a plastic card used which entitles its users to use a bank’s money on credit basis with the promise of returning the money in a pre-determined time frame.
Credit cards are issued by banks to its account holders or new customers after a verification process. This credit card can be used by users at almost all shopping places to buy goods. The user benefits as he/she does not have to carry hard cash and enjoys the facility of paying the bank back later. The bank benefits by earning interest on the amount charged by the user to buy product or products.
When a credit card is charged by a user in a shop, the amount is automatically transferred to the account of the shopkeeper by the credit card company. The customer has the option of returning the money before the due date. The user also has the option of making part payments. The bank benefits by charging interest on the unpaid amount.
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